What was Enterprise Products Partners' revenue and net income performance for the second quarter of 2007?

Enterprise Products Partners reported a 19.8% increase in total revenues to $4.21 billion and a 12.6% increase in net income to $142.2 million for the three months ended June 30, 2007, compared to the same period in 2006.

How did the company's operational segments perform, and what drove the changes in gross operating margin?

The NGL Pipelines & Services segment showed a significant increase in gross operating margin, up 42.6% year-over-year, primarily due to higher processing fees, improved NGL marketing, increased fractionation volumes, and higher NGL transportation volumes. Other segments like Offshore Pipelines & Services also saw margin improvements driven by new platform revenues, while Onshore Natural Gas Pipelines & Services and Petrochemical Services experienced slight declines due to various factors including higher maintenance costs and lower sales margins.

What were the key drivers behind the increase in general and administrative expenses?

General and administrative expenses increased significantly primarily due to the recognition of a severance obligation for the former chief executive officer and higher accounting and legal fees incurred during the quarter.

How did the company fund its capital expenditures and debt obligations?

The company continued to invest heavily in growth capital projects, totaling $1.39 billion in the first six months of 2007. Funding for these expenditures and general partnership purposes was supported by operating cash flows, borrowings under revolving credit facilities, and a $700 million issuance of junior subordinated notes (Junior Notes B) during the quarter.

EPD/EPDU 10-Q Quarterly Report Q2 FY2007 — Revenue, Net Income, EPS

Summary

Enterprise Products Partners L.P. (EPD) reported a solid second quarter of 2007, demonstrating revenue growth and improved profitability compared to the same period in the prior year. The company's strategic investments in infrastructure and expansion projects are beginning to yield results, contributing to an increase in gross operating margin across most segments, particularly in NGL Pipelines & Services. Despite higher general and administrative costs, largely due to executive transition expenses, and increased interest expense from recent debt issuances to fund growth initiatives, EPD maintained strong operational performance. The company's diversified business model and focus on fee-based services provide a stable foundation, while ongoing capital projects and potential acquisitions signal a positive outlook for continued expansion and value creation for unitholders.

Key Highlights

1Total revenues increased by approximately 19.8% to $4.21 billion for the three months ended June 30, 2007, compared to $3.52 billion in the prior year's second quarter.
2Gross operating margin improved by 20.2% to $373.3 million for the quarter compared to $310.6 million in the second quarter of 2006, driven by strong performance in NGL Pipelines & Services.
3Net income rose by 12.6% to $142.2 million for the quarter, compared to $126.3 million in the prior year's second quarter.
4Capital expenditures for the first six months of 2007 totaled $1.39 billion, reflecting significant investment in growth capital projects, including pipeline expansions and new facilities.
5The company issued $700 million in junior subordinated notes (Junior Notes B) during the quarter to fund general partnership purposes and temporarily reduce revolving credit facility borrowings.
6Minority interest expense increased significantly, primarily due to the public unit holders of Duncan Energy Partners following its initial public offering.
7The company experienced a notable increase in General and Administrative costs, driven by executive transition expenses and higher legal and accounting fees.

ENTERPRISE PRODUCTS PARTNERS L.P. Quarterly Report for Q2 Ended Jun 30, 2007

Summary

Key Highlights

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